Home buying process in Costa Blanca

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Home buying in Costa Blanca at Spain is a new experience for many, both Spanish and foreigners. Both have doubts about the complete purchase process: payments to be made, deadlines, documentation and other procedures.

The process of buying a home on the Costa Blanca is usually similar to the rest of Spain. However there are small customs for each area.

In this post, we will report how it is usually carried out in this Spanish area of the Costa Blanca.

Once you have chosen the house you want to buy, and have agreed on a price with the seller, you should start the buying process. Common stages of this process are:

First phase of the home buying process: The reservation

Initially, a reservation of the property is made in order to withdraw it from the market, that is, to stop advertising and offering it to other potential buyers.

To reserve, the buyer can pay between € 3,000 to € 5,000, depending on the type of home and its final sale price.

The payment for this reservation is usually deposited and placed in custody with the real estate agency. They will deliver a reservation document in exchange. This reservation will not be transferred to the seller until all legal checks have been made.

If you finally do not want to carry out the purchase, you will lose this reservation. But if the seller cannot sell you, they must return it to you.

At this time, you should look for a representative, a manager or lawyer to help you with your purchase. This figure will help you in the process and the multiple procedures of the purchase. Among many: obtain the necessary tax documentation (such as obtaining a NIE number, if you do not have it), help you carry out all the legal checks of the property, presentation of taxes, property registration, changes of ownership, among others.

In case you cannot present yourself to the signature, you can at this time, grant powers of attorney to your representative to legally represent you at the signature before a notary public.

At Montesinos Falcón Real Estate we have these representation and purchase management services, if you wish, do not hesitate to ask us.

Next step will be the drafting of the sale contract, which is usually carried out approximately 3 or 4 weeks after the reservation.

Second phase of the process: The purchase-sale contract

In the purchase-sale contract, both parties, buyer and seller, commit about installments, payments and expenses to be incurred by each party, and sign by mutual agreement.

At the signing of this contract, 10% of the value of the property is usually paid (subtracting the value of the reservation already provided). Percentages could be increased depending on the property you buy or the negotiation that is reached. The payment is usually deposited directly to the seller.

These contract defines the deadlines for the delivery of documentation of the property that may be missing, as well as the expected date of signature before a notary.

If you are going to request a mortgage, you should be clear that everything that has to be ready for the expected date of signature before a notary.

Obviously date of signature before a notary is usually firm, but it can also be delayed in case of any unforeseen event or cause beyond the control of the parties, and always by mutual consent.

The sales contract also usually stipulates that, if the contract is dissolved at the request of the buyer, the buyer will lose the amounts paid so far. On the other hand, if the seller does not continue with the sale, he will have to return double the amount paid so far. If the causes are beyond the control of the parties, both can reach an agreement to delay the signature.

It normally takes between 2 and 3 months between the signing of the contract and the signing at the notary, however, these times may be affected due to the legal situation of the home to buy.

Third phase of the home purchase: The signature before a Notary

On the day of the signature, you and your representative, or only your representative (in case he or she has a power of attorney), must come with their valid identification.

You should have the payment of the remaining 90% ready, usually by bank check made out to the seller. At this time, seller must give you the keys to the property.

Remember that immediately afterwards you will also have to pay taxes and purchase expenses. Approximately 12% of the purchase price: 10% taxes and 2% notary, registration and changes of ownership.

Your manager or representative will indicate the appropriate percentages, to whom and how to pay for these expenses. And if you are a non-resident foreigner, in addition, you must pay an annual tax to the Spanish State, either for the property or for the exploitation of it. Inform about this annual expenses with your manager.

Definitely at Montesinos Falcón Real Estate we can help you with your entire buying process: from helping you find your property, to supporting you as representatives. Therefore, you can carry out your entire process through the same interlocutor.

Montesinos Falcon Real Estate founded in 1989. More than 30 years of experience and 1500 clients endorse us.

Home buying process in Costa Blanca